December 9, 2008

1. Bandwidth.com Saving You Money Through Voice & Data December 9, 2008

2. Agenda • Who is Bandwidth.com • The Company • The Network • The Traditional Voice Infrastructure • Analog- • Digital PRI • The Voice Application (SIP) • Service Savings • Single Site Convergence • Multi-site Convergence • Bandwidth.com BoxSet

3. Bandwidth.com Bandwidth.com is a complete provider of telecommunications services to Small and Medium Sized Businesses in all 50 States 250% Annualized Revenue Growth • Founded in 1999, headquartered in Research Triangle Park, NC • First broad-line data provider • Offered businesses ability to compare 20 different carriers with online pricingAPI connections with all Tier 1 providers • Created 1st Installation tracking portal for small and medium business customers • Launched VoIP in 2004 Profitable/Debt Free 99.3% Customer Retention 180+ employees dedicated to voice and data sales and support #1 fastest growing privately held telecom company in the Country Annual award given for a company’s achievements in creating a positive work environment that attracts and retains employees through a combination of benefits, working conditions and company culture. #1 fastest growing privately held company in North Carolina #16 fastest growing privately held company in the Country

4. Bandwidth.com’s Network 180+ Million Minutes a Month

5. Voice as an Infrastructure Service (Analog) Analog Lines Summary: • Numbers Routed Statically (919)555-1212 (919)555-1212 • Single Service Architecture • Limited Redundancy and Failover Options Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO • Many Companies Involved in Delivering Calls • Hunting Needed to Send Multiple Calls Long Distance Network • One Phone Number Per Talk Path • No Mobility or Flexibility TANDEM Cary, NC (919)555-1212 1213 Hunt 1214 Business Phone System Cary, NC Central Office Cary, NC

6. 8 Analog lines (8*30)…………………………………….…... $240.00 4000 min LD (4000*.05) ……………………………………… $200.00 Buy a T-1 (1.5Mb Internet Access) ……………..………… $425.00 Total ………………………………..….. $865.00 Also Remember to Add: Hunting and other Features (8*5)………………………… $40.00 FCC & Other Regulatory Fees (9.95*8)…………………. $79.60 True Total ………………………………….. $984.60 Analog Service - Financial The Situation: The Cost • 20 person Office • 8 concurrent calls(lines) • Minimum of 500Kb Internet Access • 4000 Min. LD $11,820per year $985per month $49per employee

7. Voice as an Infrastructure Service (Digital) Digital Trunks Summary: • Numbers Routed Dynamically to a Trunk (919)555-1212 (919)555-1212 • Single Service Architecture • Limited Redundancy and Failover Options Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO • Many Companies Involved in Delivering Calls • Trunks Can Now take Calls From Multiple Numbers Long Distance Network • Sold as a Bundled Offering • No Mobility and Limited Flexibility TANDEM Cary, NC (919)555-1212 • Many Competing Standards • Caller ID Issues Business Phone System Cary, NC

8. Buy a PRI…………………...………………………………….…... $550.00 4000 min LD (4000*.04) ……………………………………… $160.00 Buy a T-1 (1.5Mb Internet Access) ……………..………… $425.00 Total ………………………………..….. $1135.00 Also Remember to Add: CallerID………………………………………………………………… $50.00 FCC & Other Regulatory Fees (9.95*8)…………………. $40.00 True Total ………………………………….. $1225.00 Digital Service - Financial The Situation: The Cost • 20 person Office • 8 concurrent calls(lines) • Minimum of 500Kb Internet Access • 4000 Min. LD $14,700per year $1225per month $61per employee

9. The Voice Application SIP Summary: • Sets up and Tears Down Calls (919)555-1212 (919)555-1212 • Signaling Separated from Audio • No Bundling Needed Caller Denver, CO Central Office Denver, CO TANDEM Denver, CO • Travels over private and public IP Networks • Easy to Troubleshoot Long Distance Network • Many Failover and Recovery Options Bandwidth.com Dallas, TX • Voice May be Compressed The Internet (919)555-1212 • CallerID, DID, DNIS Included and many • Dynamic Allocation of Bandwidth Business Phone System Cary, NC

10. Session Initiation Protocol (SIP) Protocol that defines how sessions like voice, video, and IM communicate. Message is sent as text via UDP on Port 5060 What is SIP?

11. What is a SIP Trunk • One Concurrent Talk Path • 911/e911 Service • Directory Listing Service • 411 Service • Local Calling • Inward Dialing • Long Distance

12. BoxSet vol.2……………...………………………………….…... $549.00 Additional 3 Trunks……………...………………….…..…... $75.00 Long Distance ……………………………………………..…… Unlimited T-1 (1.5Mb Internet Access) …………………....………… Included Total ………………………………..….. $624.00 True Total …………………………….…….. $624.00 SIP Trunking Service - Financial The Situation: The Cost • 20 person Office • 8 concurrent calls(lines) • Minimum of 500Kb Internet Access • 4000 Min. LD $7,488per year Save up to 37% $624per month $31per employee

13. That is Not ALL the Savings!!!! Convergence?

14. Single Site w/out Convergence Summary: Voice Network • Voice & Data Separate Internet Network W / PRI • Complex W / T1 Up to50% unused PBX T1 Router Requires IT Technician Requires Telecom Technician IT Manager Telcom Manager Inefficient

15. Single Site Converged Switch Summary: Internet Network Voice Network • Voice & Data Together on the LAN and the Wan • Simplified design & W / T1 T1 Router Switch PBX IT Manager Up to10% unused Most Efficient

16. Multiple Single Sites Converged Summary: • Centralized PBX • Centralized Management • Service Continuity IT Manager

17. Bandwidth.com BoxSet (Bundles) Works With Any Phone System (Old or New)

18. Bandwidth.com BoxSet (Bundles)

19. Summary • Save Money on Service (up to 37% on service alone) • Save Capital Expense Through Convergence • Save on Labor by Centralization • Save Time • Save Resources • Choose Bandwidth.com